WASHINGTON – RealEstateRama – The U.S. Department of Housing and Urban Development (HUD) today announced the availability of $12.5 million through the Self-Help Homeownership Opportunity Program (SHOP) for eligible national and regional non-profit organizations and consortia with experience providing or facilitating self-help housing opportunities.
This funding opportunity aims to develop decent, safe, and sanitary housing for low-income persons and families who would otherwise not have the opportunity to become homeowners. The continued partnerships with local communities and organizations that SHOP funds facilitate will help rebuild and revitalize neighborhoods and improve the lives of residents by expanding access to affordable housing and homeownership opportunities.
“Expanding access to affordable homeownership is a priority of the Biden-Harris Administration,” said Secretary Marcia L. Fudge. “With the funding HUD has made availability today, and with the support of our partners on the ground, more families will be able to realize the dream of homeownership – and the security and wealth creation that comes with it.”
SHOP grant funds can be used to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. The SHOP units must be sold to homebuyers at prices below the prevailing market price.
Only national and regional non-profit organizations and consortia with experience providing self-help homeownership housing programs are eligible to apply. Applicants must propose to use a significant amount of SHOP grant funds in at least two states. Individuals are not eligible applicants for SHOP grant funds.
Eligible expenses are limited to land acquisition, infrastructure improvements, and reasonable and necessary planning and administration costs (not to exceed 20 percent). A SHOP grantee cannot spend more than $15,000 per SHOP unit on the combined costs of land acquisition and infrastructure improvements from its SHOP grant award. Successful applicants must leverage other public and private funds to pay for the construction or rehabilitation costs of each SHOP unit and for any other program costs that are not assisted with SHOP grant funds.
SHOP grantees may sub-award SHOP grant funds to local non-profit affiliate organizations to carry out the grantee’s SHOP program. The affiliate organizations must be located within the grantee’s service area.
The NOFO is offering preference points for Climate Change and Environmental Justice, Promise Zones, and Historically Black Colleges and Universities.
Applications for the FY 2022 Self-Help Homeownership Opportunity Program NOFO are due to HUD by 11:59:59 PM EST on November 7, 2022. Search Grants | GRANTS.GOV for additional information, including eligibility requirements, and to apply.